Question 1

Are We Paying Too Much?

Accepted Answer

Q: We are at present paying approximately £9,550 for our building and terrorism insurance to our ground landlord, whose responsibility this is, and who after paying the insurance company, looks to us for the repayment of the premium. We have established that that we could obtain equivalent cover from an equally competent and well reputed insurance company for considerably less (of the order of £1,000 less). We have discussed this at length with the ground landlord but they are not willing to reduce their price (for reasons that we can well imagine). Is there any tribunal, ombudsman or other authority that we can apply to to resolve this difference that we have with our ground landlord? FPRA Hon Consultant Belinda Thorpe replies: The most effective approach would be to take the ground landlord to the First Tier Tribunal who will be able to challenge the insurance charges for reasonableness. I would, however, recommend that at least three quotes are obtained to show a "normal" premium level. I would also ensure that quotations are gained using the same rebuilding cost as your current insurance, and that you approach specialist insurance providers to ensure the policy is designed for flats. It is also important to be aware of all claims that may have been incepted over the last five years, for both communal areas and individual flats, as if the history is different to the one that the ground landlord has, then this could have a considerable effect on the insurance quote obtained. [Submitted September 2016]

Question 2

Are We Paying Too Much?

Accepted Answer

Q: We are at present paying approximately £9,550 for our building and terrorism insurance to our ground landlord, whose responsibility this is, and who after paying the insurance company, looks to us for the repayment of the premium. We have established that that we could obtain equivalent cover from an equally competent and well reputed insurance company for considerably less (of the order of £1,000 less). We have discussed this at length with the ground landlord but they are not willing to reduce their price (for reasons that we can well imagine). Is there any tribunal, ombudsman or other authority that we can apply to to resolve this difference that we have with our ground landlord? FPRA Hon Consultant Belinda Thorpe replies: The most effective approach would be to take the ground landlord to the First Tier Tribunal who will be able to challenge the insurance charges for reasonableness. I would, however, recommend that at least three quotes are obtained to show a "normal" premium level. I would also ensure that quotations are gained using the same rebuilding cost as your current insurance, and that you approach specialist insurance providers to ensure the policy is designed for flats. It is also important to be aware of all claims that may have been incepted over the last five years, for both communal areas and individual flats, as if the history is different to the one that the ground landlord has, then this could have a considerable effect on the insurance quote obtained. [Submitted September 2016]

Are We Paying Too Much?

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